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Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets
6.
Goodwill and Intangible Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
Goodwill represents the difference between the purchase price and the estimated fair value of identifiable assets acquired and liabilities assumed. Goodwill acquired in a business combination and determined to have an indefinite useful life is not amortized, but instead is tested for impairment at least annually in accordance with ASC 350. The following table represents the changes in the carrying value of goodwill for the years ended December 31, 2019 and 2018 (amounts in thousands):
         
Balance as of December 31, 2017
  $
327,333
 
Goodwill adjustment related to Spectrum Lifesciences, LLC acquisition
   
203
 
Cumulative translation adjustment
   
(801
 )
         
Balance as of December 31, 2018
  $
326,735
 
Acquisition of C Technologies, Inc.
   
142,021
 
Cumulative translation adjustment
   
(343
 )
         
Balance as of December 31, 2019
  $
468,413
 
         
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
I
n December 2019, the Company recorded a deferred tax asset for the C Technologies acquisition of
$0.9 
million as an adjustment to goodwill.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
During each of the fourth quarters of 2019, 2018 and 2017, the Company completed its annual impairment assessments and concluded that goodwill was not impaired in any of those years. 
Intangible Assets
Intangible assets with a definitive life are amortized over their useful lives using the straight-line method and the amortization expense is recorded within
 
cost of product revenue and
selling, general and administrative expense in the Company’s
cons
o
li
dated
statements of comprehensive income. Intangible assets and their related useful lives are reviewed at least annually to determine if any adverse conditions exist that would indicate the carrying value of these assets may not be recoverable. More frequent impairment assessments are conducted if certain conditions exist, including a change in the competitive landscape, any internal decisions to pursue new or different technology strategies, a loss of a significant customer, or a significant change in the marketplace, including changes in the prices paid for the Company’s products or changes in the size of the market for the Company’s products. If impairment indicators are present, the Company determines whether the underlying intangible asset is recoverable through estimated future undiscounted cash flows. If the asset is not found to be recoverable, it is written down to the estimated fair value of the asset based on the sum of the future discounted cash flows expected to result from the use and disposition of the asset. If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. The Company continues to believe that its definite-lived intangible assets are recoverable at December 31, 2019.
Indefinite-lived intangible assets are
tested
for impairment at least annually. There has been no impairment of our intangible assets for the periods presented.
Intangible assets, net consisted of the following at December 31, 2019:
                                 
 
December 31, 2019
 
 
Gross
Carrying
Value
 
  
Accumulated
Amortization
 
  
Net
Carrying
Value
 
  
Weighted
Average
Useful
 
Life
(in years)
 
 
(Amounts in thousands)
   
 
Finite-lived intangible assets:
 
 
 
  
 
 
  
 
 
  
 
 
Technology
-
 developed
  $
82,169
    $
(9,669
 )   $
72,500
     
19
  
Patents
   
240
     
(240
 )    
—  
      
8
  
Customer relationships
   
160,825
     
(25,642
 )    
135,183
     
15
  
Trademarks
   
3,752
     
(333
 )    
3,419
     
20
  
Other intangibles
   
1,697
     
(947
 )    
750
     
3
  
                                 
Total finite-lived intangible assets
   
248,683
     
(36,831
 )    
211,852
     
16
  
Indefinite-lived intangible asset:
 
 
 
  
 
 
  
 
 
  
 
 
Trademarks
   
700
     
—  
      
700
     
—  
  
                                 
Total intangible assets
  $
249,383
    $
(36,831
 )   $
212,552
     
 
                                 
 
 
Intangible assets consisted of t
h
e following at December 31, 2018:
                                 
 
December 31, 2018
 
 
Gross
Carrying
Value
 
  
Accumulated
Amortization
 
  
Net
Carrying
Value
 
  
Weighted
Average
Useful
 
Life
(in years)
 
 
(Amounts in thousands)
   
 
Finite-lived intangible assets:
 
 
 
  
 
 
  
 
 
  
 
 
Technology
-
developed
  $
53,315
    $
(5,942
 )   $
47,373
     
19
  
Patents
   
240
     
(240
 )    
—  
      
8
  
Customer relationships
   
101,460
     
(16,609
 )    
84,851
     
14
  
Trademarks
   
2,160
     
(159
 )    
2,001
     
20
  
Other intangibles
   
1,061
     
(548
 )    
513
     
3
  
                                 
Total finite-lived intangible assets
   
158,236
     
(23,498
 )    
134,738
     
16
  
Indefinite-lived intangible asset:
 
 
 
  
 
 
  
 
 
  
 
 
Trademarks
   
700
     
—  
      
700
     
—  
  
                                 
Total intangible assets
  $
158,936
    $
(23,498
 )   $
135,438
     
 
                                 
 
 
Amortization expense for finite-lived intangible assets was $13.6 million, $10.6 million and $6.2 million for the years ended December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019, the Company expects to record the following
amortization
expense (amounts in thousands):
         
 
Estimated
 
 
Amortization
 
For the Years Ended December 31,
 
Expense
 
2020
  $
15,288
 
2021
   
14,813
 
2022
   
14,811
 
2023
   
14,715
 
2024
   
14,273
 
2025 and thereafter
   
137,952
 
         
Total
  $
211,852